Private credit

Private credit has seen huge inflows in recent years, but contrary to the claims made by some of its advocates it’s not a defensive asset class or a substitute for investment grade corporate and sovereign bonds.

Australia’s onshore private credit market is still nascent but that’s one of its biggest strengths, according to Epsilon Direct Lending. And while some investors are fretting a new default cycle, it’s not the end of the world.

Private credit is experiencing massive growth at a time when the global economy is changing faster than ever. Investors need to look at where it’s going, rather than where it’s been.